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Up until now I have been processing refunds from suppliers through the banking feed, simply depositing the refund amount into the account which the original payment was made from. I got this process fro this video: https://www.youtube.com/watch?v=uQWi7-PVEl8
The problem with this is that the refund doesn't appear in the supplier transactions. I then followed this process:
Step 1: Enter a supplier credit
This makes sure the credit hits the expense account you use for this supplier.
Step 2: Deposit the money you got from the refund
Step 3: Use Pay Bills to connect the bank deposit to the supplier credit
Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your supplier expenses accurate.
What seems odd is that the deposit appears now in the supplier transactions, and this means the total for the total balance for the supplier is incorrect. I'm puzzled why a bank deposit received from the supplier directly to an expense account doesn't appear in the supplier transactions, but one to the accounts receivable account does.
Attached is the supplier transactions with the lines related to the refund highlighted in red.
Could anyone advise if the transactions are correct for a refund and also why the deposit is in the transactions.
Solved! Go to Solution.
Hi JBR80,
You'll want to make sure to select the correct account for your deposit transaction so it won't show up under the supplier transactions. Let me share a few information and help you record correctly the transaction.
Ideally, only purchase transactions shows up under the Vendor tab. Choosing the Accounts Payable (A/P) account for this deposit is one of the possible ways why the transaction is showing up. You can choose a different account other than A/P.
For future reference, you can check this article for more information about A/P and A/R account: How To Group Accounts Receivable or Accounts Payable Account Types.
If you need anything else, please ping me over so I can get back.
Hi Maria,
Thanks for taking the time to reply. If you recommend not using accounts payable for the deposit, could you tell me the sequence of transactions for a a supplier refund?
I think I have followed the quickbooks method. In raising a supplier credit, the credit shows in the accounts payable account as a paid transaction. Surely this needs to be offset by the bank deposit into the accounts payable account?
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